Question: Your firm is considering a three-year project with an expected net income of $200,000 in Year 1, $300,000 in Year 2, and $400,000 in Year

Your firm is considering a three-year project with an expected net income of $200,000 in Year 1, $300,000 in Year 2, and $400,000 in Year 3. If the cost is $900,000, which will be depreciated straight-line to zero over the three-year life of the project, then find its average accounting return.

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